What an end to 2012!

Model Portfolio Wrap:

After getting shaken out of the full SPY position at the low of the day early on in the AM, the market reversed higher and closed at the high of the day on high volume!  The SPY ran from our stop to our entry price uphill after first bucking us off.  That hurts!  Good lessons to learn as we will discuss in the video later.

EBAY: 1/4 position still alive but slightly red.

HTZ:   1/4 position still alive and green.

Cash is ready for 2013!

 

 

Taking a stop on the SPY

We are out.

Being unable or unwilling to watch the market all day means sometimes you get shaken out of a position right at the low of the day.  This was the case in the model teaching portfolio, SPY stop, hit at the open.  Since then, the market bounced as expected.  Never the less, the stop worked as designed to limit the risk in portfolio volatility.  If the market shows serious signs of resuming a sustained uptrend, you now still have capital available to re-enter.

An investor watching the market all day would have an advantage of pulling the stop, and watching to see what the market does before setting the stop again.

Check back later as we review the trade and the lessons learned in a complete video.

Pre-Market Monday 12/31/2012

Last day of trading in 2012.  Futures are higher.  If we get a deal on the “fiscal cliff” today you will see some sort of market reaction.  Check back later to see if we adjust any stops on our model teaching portfolio.

If you want to be a better investor in 2013, you need to learn what mistakes you made in your methodology in 2012, and put a plan in place to make sure the same mistakes are not repeated.

Check in tomorrow when we devote a video to common investor pitfalls.

Making money in the market is all about modification of your own behavior.  It can be done with some methodical and gradual action steps.

We can become great investors.

Weekend Review Premium Content 12/30/2012 FREE NEW YEAR PROMOTION

The last Weekend Review of 2012!

I hope this has been a productive year for you all.  2013 is another opportunity to learn and develop skills that will enable you to manage your own money in any type of market.  Follow us daily and you will learn something, regardless of your investment goals.

We are offering premium content FREE to all, this weekend, as a New Year’s promotion.

If you like what you see, please join today.  This site is without a doubt the best value out there.

 

 

Weekend Free Content. SH Time? You may be a bit late

The SPY ( and the market in general ) did not attract any buyers on Friday.  You may want to watch for the SH to pull back and retest the breakout point if the SPY does get a bounce on Monday.  Cash is a good place to be if you are not comfortable considering the short side of the market.  Watch the video to see what I have in mind.

Members, check back over the weekend for more Premium content and a full market analysis.

 

Pre-Market View Friday 12/28/2012

Good Morning!

Futures http://money.cnn.com/data/premarket/ are down this morning after an encouraging end to trading yesterday.

Today is another good day to just tend to other business, and not stay glued to the stock ticker screen.

If you have been following our narrative since mid November, you have seen that you can make money in the markets without being hyperactive in your buys and sells.

Wait for the right opportunities and always keep preservation of your capital as the primary directive for every trade you initiate.

Check back this weekend when we will have a lengthy market review for members, and plenty of free stuff for folks just checking us out for the first time.

 

Pre-Market Thursday 12/27/2012

Good Morning!

Futures are higher this morning (http://money.cnn.com/data/premarket/), but with volume certain to be low as we move through the Holiday week, I am inclined to just watch and protect existing positions with smart stop losses.

If EBAY does not bounce today, I may sell the 1/4 position in the model portfolio and move to hold only 1/4 position in HTZ and the full position in the SPY.

I don’t think it is a wise move in terms of risk management to chase any stocks if the SPY is running out of energy.

Check back later.